Uncommon? Mortgage Advise

m4rk44

Hi all.. First time post and hoping for a bit of advice regarding a second mortgage.

Basically I currently have just less than £50000 remaining on my current mortgage. At the time of taking this out I wasnt earning a lot of money. I was lucky as I had a fairly sized deposit.

I want to to buy another property and rent the first property out. I do not have much for a deposit so was looking into taking some equity out on the mortgage I have to fund a second deposit.

I am now "in" a much better job since 1 year ago earning lots more in comparison to 2 years ago. The problem is I work for an agency. Not really "guaranteed" work but going well. I work on a day rate and was hoping someone could give me some advise regarding getting that second mortgage or show me if there is anything I have over looked?

The reason I am in a bit of a 'rush' is we need extra space and due to the ammount we currently pay for our mortgage Vs what we can get in rent - it seems to me to be a financially sound decision.

Many thanks in advamce - would greatly appreciate any advice!

M

Dave_Ham

Hi M,

This sounds achievable, although without more details would be impossible to comment further..

Typically you can raise upto 75% of your current homes value as alet to buy..

You will need a broker for this part and also to manage the way you are employed through agency. Can be done but challenging..

m4rk44

What kind of info would you need to comment further? Any advise would be great

Thanks Dave

Thrugelmir

m4rk44 wrote: »

I do not have much for a deposit so was looking into taking some equity out on the mortgage I have to fund a second deposit.

You will find many lenders are no longer keen on releasing equity for this purpose.

Lenders prefer borrowers to put their money at risk .

Simon_gloster

m4rk44 wrote: »

What kind of info would you need to comment further? Any advise would be great

Thanks Dave

Your occupation will have a big impact on this.

Going forward most lenders dont like temps for the reason you stated. Those that will entertain you will want 24 months continuous...ie no gaps at all....employment.

Wh05apk

Thrugelmir wrote: »

You will find many lenders are no longer keen on releasing equity for this purpose.

Lenders prefer borrowers to put their money at risk .

Funny, but I have not really come across that?

Dave_Ham

m4rk44 wrote: »

What kind of info would you need to comment further? Any advise would be great

Thanks Dave

What value is your property worth?

What value are you looking to buy?

Tell us a bit more about how your income is structured and is it in a specialist field, where you have a cross transferable skill?

There will be options, but depending upon the above it may be mainstream banks or may need to present to a smaller, more flexible building society.